Regulation 10A - In case of transfer of shares between a resident buyer and a non-resident seller or vice-versa - Foreign Exchange Management (Transfer or Issue Of Security By A Person Resident Outside India) Regulations, 2000

These rules have been superseded vide New Regulations New Regulations of 2017 1 [10A. In case of transfer of shares between a resident buyer and a non-resident seller or vice-versa , not more than twenty five per cent of the total consideration can be paid by the buyer on a deferred basis within a period not exceeding eighteen months from the date of the transfer agreement. For this purpose, if so agreed between the buyer and the seller, an escrow arrangement may be made between the buyer and the seller for an amount not more than twenty five per cent of the total consideration for a period not exceeding eighteen months from the date of the transfer agreement or if the total consideration is paid by the buyer to the seller, the seller may furnish an indemnity for an amount not more than twenty five per cent of the total consideration for a period not exceeding eighteen months from the date of the payment of the full consideration: Provided the total consideration finally paid for the shares must be compliant with the applicable pricing guidelines.] ------------------------ Notes:- 1. Inserted vide Not. 368/2016-RB - Dated 20-5-2016